THE MONETARY BOARD (MB) has banned a cooperative bank in Bohol from doing business, the Bangko Sentral ng Pilipinas (BSP) said.
In a circular letter, the central bank said its policy-setting Monetary Board has “decided to prohibit the Cooperative Bank of Bohol from doing business in the Philippines,” according to its Resolution No. 818-B dated July 18.
This was pursuant to Section 30 of Republic Act (RA) No. 7653 or the New Central Bank Act.
Section 30 of the Act is concerned with proceedings in receivership and liquidation.
“The Philippine Deposit Insurance Corp. has been designated as receiver with a directive to proceed with the takeover and liquidation of the aforementioned cooperative bank in accordance with Section 12 (a) of RA No. 3591 (PDIC Charter) as amended,” the BSP added.
The Cooperative Rural Bank of Bohol, Inc. was organized by 320 cooperative organizations called “Samahang Nayons” from various towns in Bohol, according to its website.
It is the first cooperative bank in Central Visayas. The bank began operating in November 1980 with an initial capital of P840,000.
Cooperative Bank of Bohol has branches in Candijay, Inabanga, and Panglao Island. — L.M.J.C. Jocson
